Croatia must pull back from the brink and pause enforcement of the new games of chance law

The newly adopted Croatian law includes several new requirements which require notification including mandatory player identification for venue entry, a self-exclusion register, advertising restrictions, strict rules on the location of gambling venues, restrictions on days of operation, increased licensing fees and taxation.

EU Member States must notify any national provisions that restrict market access or the provision of services. Failure to comply with the notification procedure constitutes a breach of EU law, potentially leading to the suspension of the law’s application and the initiation of infringement proceedings and ultimately possible fines. If left unaddressed, Croatia’s failure to notify could render the law unenforceable.

The Croatian Gambling Act is set to come into force in just 8 days. EUROMAT strongly urges the Croatian Government to suspend enforcement of the newly adopted law until proper notification procedures are completed and it is conclusively established that the legislation complies with EU law and fundamental Internal Market principles.

Commenting on the situation, EUROMAT President Jason Frost said: “ We understand that the European Commission is in touch with the Croatian government on this issue and I hope that the outcome of this is respect for EU law. The Croatian government should have halted its legislative process and followed the correct procedure.

“Europe’s Single Market is undermined by Member States if they cherry pick legal compliance. Business needs legal certainty and we are hopeful that the Commission will play its role in ensuring that Croatia respects its obligations”.

Filip Jelavic, General Sectary of the Croatian Gaming Association added: "We welcome the fact that the European Commission has responded and reminded the Croatian government of the importance of adhering to the established procedures within the EU. We believe it is in the interest of all stakeholders – including the Croatian Government – that the legislative process is carried out in accordance with the European legal framework. Legal certainty and predictability are essential for market stability, and any potential financial consequences arising from procedural shortcomings are ultimately borne by businesses and citizens. Therefore, we consider it important for the Croatian Government to respect its obligations and allow the European Commission to verify that the adopted text is compatible with EU law and the Internal Market principles before it applies”.